Kimpton® Hotels & Restaurants Franchise Cost, Revenue & Review 2026
- Investment
- $65.1M – $91.5M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Kimpton Hotels & Restaurants is IHG's luxury boutique hotel franchise, pairing design-forward hotels with on-site bars and restaurants. Franchisees own and operate the properties, managing guest services, food and beverage, and brand standards.
FranchiseVerdict summary · 2026
A Kimpton® Hotels & Restaurants franchise requires a total initial investment of $65.1M – $91.5M, including a $100K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $65.1M – $91.5M
- 69th pct Lodging
- Avg gross sales
- N/A
- Company-owned onlyProjection
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 59
- 37th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $65.1M – $91.5M including a $100K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports operational metrics for 44 Mature Kimpton Hotels (FY2023), not gross sales dollars: Average Occupancy Rate 70.1% (high 86.3%, low 37.5%, median 71.5%); Average ADR $280.42 (high $942.58, low $144.92, median $245.96); Average RevPAR $196.47 (high $683.52, low $62.13, median $170.26). Of 59 US hotels, 44 qualified as Mature.
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
- GROWTHPositive: net +6 franchised outlets in the latest year (6 opened, 0 closed); 20 signed but not yet open (Item 20).
- LEGAL61 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 0 name the franchisor itself, 15 its parent, affiliates or predecessor. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- IHG Franchising, LLC
- Parent company
- Six Continents Hotels, Inc.
- Ultimate parent
- InterContinental Hotels Group PLC
- Predecessor
- Kimpton Hotel & Restaurant Group, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer, InterContinental Hotels Group, PLC
- Elie W. Maalouf
- Incorporated in
- DE
- HQ
- Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $68K
- vs $168K prior year
Affiliated brands
- of Holiday Hospitality Franchising
- Six Continents Limited
- IHG Hotels Limited
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1
8 other brands on this site name InterContinental Hotels Group PLC as parent or ultimate parent in their own FDD.
- Crowne PlazaB
- EVEN HotelsB
- Holiday InnB
- Hotel IndigoB
- InterContinental Hotels & ResortsB
- Ruby HotelsC
- Vignette CollectionC
- avid hotelsB
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Elie W. Maalouf
- Headquarters
- GA
- Founded
- 1981
- FDD year
- 2024
- States available
- 24
Can you afford it, and what does the money buy?
Entry cost runs 780% above the typical lodging franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| Working capital (3–6 mo) | $2.2M | $3.0M |
| Equipment, build-out, other | $62.8M | $88.4M |
| Total initial investment | $65.1M | $91.5M |
Source: Kimpton® Hotels & Restaurants 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $65.1M – $91.5M
- Bottom third — review vs category
- Liquid capital req'd
- $2.2M – $3.0M
- Bottom third — review vs category
- Franchise fee
- $100K
- Middle of category vs category
- Royalty
- 6.0%
- Set by a formula · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 26.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $17 |
| Training fee | $40K |
| Transfer fee | $25K |
| Inventory (initial) | $1.9M – $2.6M |
| Total fee load | 26.1% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Kimpton® Hotels & Restaurants is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Kimpton® Hotels & Restaurants unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 19 reports operational metrics for 44 Mature Kimpton Hotels (FY2023), not gross sales dollars: Average Occupancy Rate 70.1% (high 86.3%, low 37.5%, median 71.5%); Average ADR $280.42 (high $942.58, low $144.92, median $245.96); Average RevPAR $196.47 (high $683.52, low $62.13, median $170.26). Of 59 US hotels, 44 qualified as Mature.
Company-owned outlets only - not franchisee performance
An occupancy metric, not unit revenue
- Item 19 type
- other
- Sample size
- 44
- vs category median 98 · small
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
Compared against 175 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 26.1% — above the Lodging median of 8.5%.
Disclosure
Item 19 reports other rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 100.0% CAGR over 3 years across 59 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Kimpton® Hotels & Restaurants Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 59
- Opened
- 6
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 20
- 0.34 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
- Transfer rate
- 9.8%
- Owners selling to other franchisees
- Termination rate
- 3.3%
- Franchisor-initiated terminations
- Ceased ops
- 1.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
55 current owners across 23 states.
- CA 11
- FL 11
- GA 4
- DC 3
- NC 3
- WA 3
- NY 2
- PA 2
- TX 2
- AZ 1
- CO 1
- IL 1
- +11 more states
Counts only, from the list the franchisor prints in Item 20; 26 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Kimpton presents elevated risk due to undisclosed financial performance, extensive litigation, unprotected territories, and aggressive expansion that outpaces due diligence transparency.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
No pending litigation relating solely to Kimpton brand. Multiple pending cases involving affiliates Holiday Hospitality Franchising LLC and Six Continents Hotels (SCH) for unpaid franchise fees, breach of contract, class actions re kickbacks and data breach. Several Kimpton-specific matters (credit card breach, BIPA class action, data security breach) concluded via settlement.
Largest disclosed settlement: $10,900,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 58 / 100 verdict
- 01HIGHSignificant litigation portfolio including data security breaches, licensee disputes, non-payment actions, and territorial conflicts suggesting operational and legal risk
- 02MINORUnprotected territory creates direct competition risk from other Kimpton franchisees and company-owned locations without contractual safeguards
- 03MINOR60% YoY unit growth rate is extremely aggressive and may indicate unsustainable expansion or cannibalization concerns rather than organic strength
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail61 matters · Item 3
Litigation cases
Parent, affiliates and predecessor
Pending (11)
Holiday Hospitality Franchising, LLC v. Momentum Fort Worth Investment LLC, Abdul Majid Hassanally and Shahnaz Majid Hassanally
pendingBrought against a franchisee · Holiday Hospitality Franchising, LLC · filed 2024 · State Court of DeKalb County, Georgia · Civ. Action No. 24A00417
“Holiday filed this suit against the defendants seeking liquidated damages, unpaid franchise fees, and other amounts exceeding $1.5 million arising from defendants alleged breach of a Holiday Inn license agreement and Holiday’s subsequent termination of the license related thereto.”Page 20 of the 2024 FDD, Item 3
Outcome:“Holiday believes its claims are meritorious, the Defendants’ counterclaims and defenses are not, and Holiday is prosecuting its case and defending against the counterclaims vigorously.”
Ahijit Vasani a/k/a Andy Vasani, Bhavna Vasani a/k/a Becky Vasani, Innvite Hospitality Group, LLC v. Holiday Hospitality Franchising, LLC, Surati Investment, LLC, Raiyan Rab, Numarix Real Estate Services, LLC, Mark Wolfe, Equity Central Realty, LLC
pendingBrought by a franchisee · Holiday Hospitality Franchising, LLC · filed 2023-07-17 · Court of Common Pleas, Lucas County, Ohio · Case No. G-4801-CI-0202303085-000
“Plaintiffs claim that, in connection with the sale process related to the Hotel, they were misled into believing the scope of work required by the change of ownership license agreement for the hotel would be lighter in scope and less expensive than what it turned out to be.”Page 21 of the 2024 FDD, Item 3
Outcome:“Appellate briefing is ongoing and the appeal remains pending.”
Atlanta Hospitality Investment, LLC, a Georgia limited liability company, and Mohammad Sarower Hossain, individually v. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · Holiday Hospitality Franchising, LLC · filed 2023-10-31 · DeKalb County, Georgia Superior Court · Civ. Action No. 23-CV-9509
“The amended petition alleges that Holiday made certain misrepresentations to plaintiffs in advance of the execution of the license agreement but asserted no claim for damages.”Page 20 of the 2024 FDD, Item 3
Outcome:“Holiday believes the plaintiff’s summary judgment motion has no merit and will file its own summary judgment motion at the appropriate time.” (page 21)
Park 80 Hotels, LLC, PL Hotels, LLC, Mayur Patel, JSK Exton LLC, Jay Z. Kuber Hospitality, Inc., Parmattma Corporation and Synergy Hotels, LLC, individually and on behalf of all others similarly situated v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental H
pendingBrought by a franchisee · Holiday Hospitality Franchising, LLC; Six Continents Hotels, Inc.; IHG Technology Solutions, LLC · filed 2022 · N.D.Ga. · Case 1:22-cv-03709-LMM
“The putative class action lawsuit brought on behalf of putative classes of Holiday licensees relates to an unauthorized access to certain of IHG’s systems by third party bad actors that resulted in a temporary disruption of certain services which plaintiffs allege had a negative impact on their businesses.”Page 23 of the 2024 FDD, Item 3
Outcome:“Holiday, SCH and IHG Technology Solutions, LLC believe the allegations to be meritless and are defending vigorously.”
TJM Columbus, LLC d/b/a Crowne Plaza-Columbus North and TJM Syracuse, LLC d/b/a Crowne Plaza Syracuse v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental Hotels Group
pendingBrought by a franchisee · Holiday Hospitality Franchising, LLC; Six Continents Hotels, Inc. · filed 2022-05-23 · DeKalb County, Georgia Superior Court (removed twice to N.D. Ga., 1:22-cv-2541-VMC and 1:24-cv-00055-VMC; remanded) · Civ. Action No. 22-cv-5181
“Plaintiffs are Crowne Plaza® licensees (for the Crowne Plaza® Columbus North – Worthington and the Crowne Plaza® Syracuse, respectively). Plaintiffs assert a breach of contract claim against Holiday and SCH related to a proposed sale of the subject hotels to a developer that intended to convert the subject hotels out of the Crowne Plaza® system.”Page 23 of the 2024 FDD, Item 3
Outcome:“Holiday and SCH filed a renewed motion for summary judgment on all claims on May 23, 2024, which remains pending.” (page 24)
Park 80 Hotels LLC, a Louisiana limited liability company, PL Hotels, LLC, a Louisiana limited liability company, individually, and on behalf of a class of similarly situated individuals and entities v. Holiday Hospitality Franchising, LLC, Six Continents Hotels, Inc. D/b/a Intercontinental Hotels G
pendingBrought by a franchisee · Holiday Hospitality Franchising, LLC; Six Continents Hotels, Inc.; IHG Owners Association, Inc. · filed 2021-05-19 · United States District Court, Northern District of Georgia (consolidated; lead case filed in E.D. La.) · Civil Action No. 1:21-cv-04650-ELR (consolidated)
“Each of the lawsuits allege that Holiday and SCH engages in unlawful and otherwise improper franchise business practices, including, imposing unreasonable products, services and requirements and receiving improper kickbacks from required purchases.”Page 24 of the 2024 FDD, Item 3
Outcome:“On March 13, 2024, Holiday and SCH filed their opposition to class certification and a motion to exclude Plaintiffs’ expert, and Plaintiffs filed a response to Holiday and SCH’s summary judgment motion. Both motions remain pending.” (page 25)
Scion Hotels LLC vs. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · Holiday Hospitality Franchising, LLC · filed 2021-02-18 · D.N.J · Case No. 2:21-cv-02276-MCA-MAH
“Scion Hotels LLC (“Scion”), a New Jersey licensee of a Holiday Inn hotel, filed a civil complaint against Holiday to obtain damages for violation of the New Jersey Franchise Practices Act in allegedly wrongfully imposing unreasonable standards of performance upon Scion and then wrongfully refusing to renew its license agreement.”Page 21 of the 2024 FDD, Item 3
Outcome:“The parties have completed fact and expert discovery, and Holiday filed a motion for summary judgment on all claims on April 28, 2023, which has been fully briefed, and the parties are awaiting the Court’s ruling.” (page 22)
Holiday Hospitality Franchising, LLC v. Niranjan Khatiwala, Nimesh D. Vesuwala and Mayur N. Khatiwala
pendingBrought against a franchisee · Holiday Hospitality Franchising, LLC · filed 2020-12-11 · State Court of Dekalb County, Georgia (transferred to Superior Court of DeKalb County, Civil Action No. 22CV4560) · Civil Action File No. 20A83898
“On December 11, 2020, Holiday filed a lawsuit against the defendants seeking liquidated damages and unpaid system fees owed under a Crowne Plaza® license agreement that Holiday terminated as a result of the licensee’s failure to pay amounts owed to Holiday under the agreement.”Page 25 of the 2024 FDD, Item 3
Outcome:“The case is currently pending in the Superior Court of DeKalb County, Georgia under Civil Action No. 22CV4560.” (page 26)
Marina di Castello SpA v. IHG Hotels Limited
pendingBrought by a franchisee · IHG Hotels Limited · filed 2013-11-22 · Court of Santa Maria Capua Vetere, Italy · Docket No. 4307/27
“The former licensee of the Holiday Inn Resort Naples - Castel Volturno hotel and the Crowne Plaza Caserta hotel issued a claim against IHG Hotels Limited (“IHGHL”), brought in the Court of Santa Maria Capua Vetere, seeking to have the Court: 1) declare that the arbitration provisions in the license agreements are invalid; 2) determine whether or not IHGHL's conduct has resulted in damages to the”Page 22 of the 2024 FDD, Item 3
Outcome:“On October 10, 2023 the former licensee filed an appeal which is now pending.”
Astoria Enterprises Ltd. v. Holiday Hospitality Franchising, Inc. and InterContinental Hotels Group PLC
pendingBrought by a franchisee · Holiday Hospitality Franchising, Inc.; InterContinental Hotels Group PLC · filed 2007-12-21 · The Queen’s Bench Winnipeg Centre · File No. CI-07-01-54936
“On December 21, 2007, Astoria Enterprises (“Astoria”), a former Licensee, filed suit against Holiday demanding $541,000 in damages for failing to renew or extend an existing license beyond its original termination date and for loss of reputation. According to Astoria, Holiday’s refusal to renew the License was wrongful and commercially unreasonable.”Page 22 of the 2024 FDD, Item 3
Outcome:“Holiday filed an answer denying any liability, and discovery is ongoing.”
K.J. Harjani & Cia Ltda v. Six Continents Hotels, Inc.
pendingBrought by a franchisee · Six Continents Hotels, Inc. · filed 2006-07-05 · 3rd Civil Court of Manaus, Brazil · Case No. 0022145-55.2006.8.04.0001
“K.J. Harjani & Cia Ltda v. Six Continents Hotels, Inc., 3rd Civil Court of Manaus, Brazil, Case No. 0022145-55.2006.8.04.0001 (July 5, 2006). The former licensee of the Holiday Inn® hotel in Manaus, Brazil filed a lawsuit seeking damages for alleged wrongful termination of the license agreement. The license agreement was terminated due to non-compliance with brand standards in 2002.”Page 22 of the 2024 FDD, Item 3
Outcome:“SCH intends to defend against this claim vigorously.”
Concluded (4)
Anderson, et al. v. Kimpton Hotel & Restaurant Group, LLC
settledThird-party plaintiff · Kimpton Hotel & Restaurant Group, LLC · filed 2019-04-05 · United States District Court, Northern District of California · Civil Action Case No. 3:19-cv-01860-MMC
“On April 5, 2019, Plaintiffs filed a purported class action suit alleging that they were harmed by the compromise of personal information due to a data security breach affecting Kimpton Hotels during the period August 10, 2016 – March 9, 2017. This suit relates to the breach of the Sabre SynXis reservation system used by Kimpton during the referenced time frame.”Page 27 of the 2024 FDD, Item 3
Outcome:“On May 26, 2023, the parties signed a settlement agreement resulting in Kimpton Hotels making payment to plaintiffs. The case was dismissed with prejudice on May 26, 2023”
Eric Zepeda v. Intercontinental Hotels Group, Inc. and Kimpton Hotel & Restaurant Group, LLC
settledThird-party plaintiff · Kimpton Hotel & Restaurant Group, LLC (Intercontinental Hotels Group, Inc. was voluntarily dismissed) · filed 2018-02-16 · Circuit Court of Cook County, Illinois County Department, Chancery Division · Case No. 2018-CH-02140
“On June 27, 2017, Eric Zepeda filed a class action suit against Intercontinental Hotels Group, Inc. and Kimpton Hotel & Restaurant Group, LLC, alleging violation of the Illinois Biometric Information Privacy Act, 740 ILCS 14/1, et seq., which Kimpton removed to U.S. District Court for the Northern District of Illinois. Intercontinental Hotels Group, Inc. was voluntarily dismissed from the action.”Page 27 of the 2024 FDD, Item 3
Outcome:“The court granted final approval on December 5, 2018. The third-party class administrator has notified all class members and is facilitating payment of claims. The court action is now closed.”
Lee Walters v. Kimpton Hotel & Restaurant Group, LLC
settledThird-party plaintiff · Kimpton Hotel & Restaurant Group, LLC · filed 2016-09-20 · United States District Court, Northern District of California · Civil Action No. 3:16-cv-05387-VC
“Lee Walters v. Kimpton Hotel & Restaurant Group, LLC, United States District Court, Northern District of California, Civil Action No. 3:16-cv-05387-VC (September 20, 2016). On September 20, 2016, Lee Walters filed a class action suit against Kimpton Hotel & Restaurant Group, LLC alleging damages from a credit card breach.”Page 27 of the 2024 FDD, Item 3
Outcome:“Following discovery and mediation on March 12, 2018, the parties reached agreement to resolve this matter on a class-wide basis, subject to court approval. The Court granted preliminary approval of the settlement on January 19, 2019.”
Lenexa Hotel, LP v. Holiday Hospitality Franchising, Inc.
settledBrought by a franchisee · Holiday Hospitality Franchising, Inc. · filed 2012 · United States District Court, District of Kansas, Kansas City Division, KS · Case No. 12CV2775; Case No. 15-9196
“A lawsuit was filed by a Crowne Plaza® licensee in Lenexa, Kansas, initially on December 10, 2012 and later amended on January 17, 2013, alleging breach of contract, breach of the covenant of good faith and fair dealing and seeking declaratory relief as result of Holiday’s alleged failure to meet its contractual obligations concerning the reservation system.”Page 32 of the 2024 FDD, Item 3
Outcome:“Following a mediation, the parties resolved this matter with no admission of liability by either party and Holiday making a payment to Plaintiff of $10.9M.”
This list shows 15 of the 61 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 26.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 61 |
View Item 3 litigation summary
No pending litigation relating solely to Kimpton brand. Multiple pending cases involving affiliates Holiday Hospitality Franchising LLC and Six Continents Hotels (SCH) for unpaid franchise fees, breach of contract, class actions re kickbacks and data breach. Several Kimpton-specific matters (credit card breach, BIPA class action, data security breach) concluded via settlement.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 24 hrs
- Training location
- Atlanta, GA or other designated regional location; on-property; virtual
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Licensee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Oracle America, Inc. Opera/Opera Xpress PMS; F&B POS (Kimpton approved)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle America, Inc. Opera/Opera Xpress PMS; F&B POS (Kimpton approved)
Item 20 · call current owners
Franchisee Contacts
81 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Kimpton® Hotels & Restaurants franchise?
The total investment to open a Kimpton® Hotels & Restaurants franchise ranges from $65.1M – $91.5M, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Kimpton® Hotels & Restaurants franchise owners earn?
Item 19 of the Kimpton® Hotels & Restaurants FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Kimpton® Hotels & Restaurants?
Kimpton® Hotels & Restaurants is franchised by IHG Franchising, LLC. Its parent company is Six Continents Hotels, Inc.. The ultimate parent named in the FDD is InterContinental Hotels Group PLC. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Kimpton® Hotels & Restaurants FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Kimpton® Hotels & Restaurants FDD and qualifies whose outlets they describe.
What is Kimpton® Hotels & Restaurants's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Kimpton® Hotels & Restaurants (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Kimpton® Hotels & Restaurants franchise locations are there?
As of their most recent FDD filing, Kimpton® Hotels & Restaurants has 59 total units in the United States, including 16 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is Kimpton® Hotels & Restaurants a good franchise to buy?
FranchiseVerdict rates Kimpton® Hotels & Restaurants as a B-grade franchise with a verdict score of 58 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.